“If you think you're too small to make a difference, try sleeping with a mosquito in a room.”
– Dalai Lama
Happy Thursday! Without further ado, let's see what's up in the crypto space. 👀
Today in history (1945), the United Nations was formed. 🤝
In today's newsletter, we will be covering Coinbase generating ~$2 billion in transaction fees since 2012, Google's quantum breakthrough possibly improving proof-of-stake, and a former world gold council exec developing a new Bitcoin ETF. Today, we also have our weekly 'Thursday think tank' section, courtesy of our friends over at Flipside Crypto!
Please do not forget to answer the polls down below too! It's a great way to interact with you and hear what you have to say. 💭 Happy reading! 📚
Down we go 😭
Over the last 24 hours, total market capitalization experienced a large ~$10 billion drop from ~$217.9 billion to ~$204.1 billion, with most coins seeing losses in the ~3-10% range. 24-hour volume registered ~$80 billion. This all unfolded as Zuckerberg was being grilled by U.S. Congress on the Libra stablecoin. Coincidence? Possibly.
After a long period of consolidation at the $8,000 levels, BTC is seeing some decisive bearish momentum and is now trading at ~$7,480, down ~6.8% over yesterday, and has broken a key support level. On the daily chart, BTC continues to trade below its 100-day EMA line, and RSI is at ~30, indicative of significant bearish momentum. On the weekly chart, BTC just broke to the downside of its 100- EMA line - a level it has held since it broke to its upside in April this year. 👀
Rolling in dough 🤑
Coinbase's CEO Brian Armstrong revealed at Vanity Fair's New Establishment Summit that Coinbase has created almost $2 billion in transaction fees since its launch in 2012.
Armstrong attributed its consistent profitability to the crypto exchange's focus on technology. He added that “most of these [the] profits we’re [they’re] plowing back into the business to create new products” and that he thinks of Coinbase as “the anti-unicorn unicorn”, in that he wants “Coinbase to be a company of repeatable innovation”. 🎉
He also added that he does not know why regulators’ reactions to the planned launch of Facebook’s Libra were so negative in the United States, and that he'd "really like to see the U.S. embrace this area of innovation, even if it comes from a company like Facebook that they’re not necessarily very happy with”.
Quantum powaarrr 🖱️
Using Google's quantum computing technology could supposedly help boost the technology that supports proof-of-stake (PoS) cryptocurrencies. PoS is a consensus algorithm where block creators are randomly chosen with probability proportional to their stake. However, doubts have been raised regarding the integrity of random selections.
According to a quantum theoretician at the University of Texas at Austin, Scott Aaronson, quantum computing could quell PoS skeptics' doubts as a quantum supremacy experiment could generate certifiably random numbers and combat this.
On 23 Oct, Google published the results of its quantum supremacy experiment (which Aaronson peer-reviewed), and found that it's “Sycamore” machine took just 200 seconds to "sample one instance of a quantum circuit a million times", as opposed to the allegedly most powerful computer to date IBM's Summit supercomputer that would take 10,000 years to run such a calculation. 😯
In it for the long haul🙏
The ex managing director of the World Gold Council and portfolio manager of SPDR Gold Shares, Jason Toussaint, is creating a new Bitcoin (BTC) exchange-traded find (ETF) with boutique asset manager, Kryptoin Investment Advisors.
The fund will track the CME CF Bitcoin Reference Rate to show BTC's true market price.💲
If approved by the U.S. Securities and Exchange Commission (SEC), its shares would be listed on stock and options trading-focused NYSE Arca. Toussaint also stated that they are "in this for the long haul", despite wanting to "get it approved as soon as possible".
The name given to the algorithm that encrypts and decrypts information.
Thursday think tank 🧠
Our friends over at Flipside Crypto have produced data revealing the most under- and overvalued coins for the week! 🧐
The scores you see below refer to the ratio of each coin's current FCAS rating to its current market capitalization, both standardized to a 1000-point scale. A score above 1 reflects an undervalued coin, and a score below 1 indicates an overvalued asset!
Hold your horses! Before you go ahead and jump right into investing, always remember to first D.Y.O.R (Do your own research)!
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During the House Financial Service Committee’s hearing,Facebook CEO Mark Zuckerberg claimed that the Libra project would maintain the U.S.' leading financial position and defend against China's digital currency. 🛡️
Deutsche Boerse and Commerzbank have finished a collaborative test transaction settlement of post-trade securities by using digital tokens and distributed ledger technology (DLT). ⚙️
The Litecoin Foundation has proposed the Mimblewimble protocol as an opt-in transaction format via "extension blocks" (EBs). 🔌
Crypto calendar 📅
TBA - Justin Sun's lunch with Warren Buffett
What's up in the markets
Daily Top 10
Greatest Crypto Gainers
Greatest Crypto Loses
New on CoinMarketCap
Poll of the Day
How much do you agree with this statement: "I believe that the Facebook Libra coin will eventually be given the green light by Congress."
"How much do you agree with this statement: "Facebook's Libra will do an overall net good to the U.S. financial system""
The average vote was 4.6.
"Why or why not?"
Mark Zuckerberg to bring overall net good to US or any part of the world? By using people's private information without their consent? I simply don't think so. Mark has proven time and again to be a shady fellow and therefore deserves no trust. Besides, I've not seen him show support for any of the public blockchain networks, which is a big red flag - No way would he support a decentralized endeavor. It wouldn't make sense to him as Facebook chairman.
Because it is a Facebook project. – Facebook-led project haha. Other members will have a say too.
Facebook hurt society. I am sure libra will do the same. – Can’t disagree here. It certainly has a questionable track record. 🙈
on the whole i think facebook's libra will be good for the crypto industry. it will bring more awareness & adoption of blockchain. in the end people will be free to choose between libra & other crypto available in the market. the eco system will benefit a lot. – I agree.
The only good thing I see is that it will bring attention to crypto – It might be the mainstream’s foray into cryptocurrencies. 😄
maybe they can or not but for facebook to dominate it'll need to do what no other stablecoin is doing... – That member association would certainly have the firepower to do so. 😂
I don’t trust facebook - Understandable, given the track record.
What happened to this news letter, I’m a sad boy but I still check every day, sponsor I know, 👌we still cool though 👍🏻 – Lol, we’ve been running ads for the longest time! We didn’t sell out (:
At least it will bring more awareness and potentially some credibility to the crypto world. – I believe it already has. 😄
Fakebook cannot be trusted. – Thing is the Libra Association will be run by all other member companies though. Fakebook lolol.
Promote block chain ledger awareness, pave the way for a true distributed ledger payments system. – Hopefully! 🙏🏻
Privacy concerns. but the short answer is yes, will show the future as digital, however, just replacing the central bank with a privately owned company, may just be the same monster in a different cloak. Going back, to what happened with data collections and the US election thing, FB screams caution in my head. But what the want to do, bigger picture, it looks good on paper. - Yeah, on paper haha. It's very well marketed though, saying that it's to help the unbanked. The house grilled him ytd and asked him what prior initiatives has he undertaken for civil rights - He couldn't answer 😂.
Thank you all for reading! Catch you back here again tomorrow for your daily dose of crypto news! 💙